Colombia Probes Trading Before Pacific-Petrominerales Statements

By Andrew Willis -
Oct 1, 2013

Colombia opened an investigation into
Petrominerales Ltd. (PMG)’s record share price gain before the
announcement of a C$935 million ($909 million) takeover
agreement.

The Superintendencia Financiera, as the country’s
securities regulator is known, is seeking information from
Calgary-based Petrominerales and its prospective buyer Pacific
Rubiales Energy Corp. (PRE), as well as exchanges in Bogota and
Toronto, the agency said in an e-mailed response to questions.

Petrominerales rose a record 18 percent Sept. 27, while
Pacific fell in Bogota as the two crude producers were put on
trading halt in Toronto pending news. They disclosed the
acqusition agreement two days later.

The probe aims to “clarify the circumstances in which
transactions were carried out on the exchange,” the regulator
said yesterday.

Pacific said it would answer any questions from the
regulator, and the Toronto stock exchange declined to comment,
in e-mailed responses to questions. Petrominerales and the
Bogota stock exchange didn’t immediately reply to requests for
comment.

Under the deal, Pacific has agreed to buy light-oil
producer Petrominerales for C$935 million in cash as the world’s
fastest-growing major crude producer seeks to reduce transport
costs in Colombia.

Petrominerales stockholders will receive C$11 a share and
one share in a newly formed exploration and production company.